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The third round of examination and inquiry letter on the application documents of Guangdong Dingtai High Tech Co., Ltd. for initial public offering and listing on the gem
Reply Report
Sponsor (lead underwriter)
(address: North block, Zhuoyue Times Square (phase II), No. 8, Zhongxin Third Road, Futian District, Shenzhen, Guangdong Province) Shenzhen Stock Exchange:
The third round examination and inquiry letter on the application documents of Guangdong Dingtai High Tech Co., Ltd. for initial public offering and listing on the gem (examination and approval letter [2021] No. 011417) (hereinafter referred to as the "inquiry letter") issued by your office on December 28, 2021 has been received, Citic Securities Company Limited(600030) as the sponsor and lead underwriter, with the issuer The lawyer of the issuer and the accountant of the issuer have carefully implemented the issues listed in the inquiry letter one by one, and now the reply is as follows, please review.
explain:
1、 Unless otherwise specified, the definitions of abbreviations or terms in this reply report are the same as those in the prospectus (declaration draft).
2、 The font in this reply report represents the following meanings:
Bold (not bold): review the questions listed in the inquiry letter
Song typeface (not bold): reply to the questions listed in the audit inquiry letter
Italics (BOLD): amendments to the prospectus (declaration draft)
Italics (not bold): references to the prospectus (draft declaration)
catalogue
catalogue 2 question 1. About R & D expenses 3 question 2. About waste revenue 18 question 3. About consignment income 26 question 4. About main products thirty-two
Question 1. About R & D expenses
According to the application documents and inquiry replies, the amount of direct materials in the R & D expenses of the issuer in each phase is 15.24 million yuan, 19.42 million yuan, 29.04 million yuan and 16.65 million yuan respectively. The main raw material purchased by the issuer is tungsten steel.
Please the issuer:
(1) Explain the quantity and amount of tungsten steel at the beginning, purchase, use (specifically divided into production, sales, R & D and other purposes) and at the end of each period, the final destination of direct materials used in R & D, and whether waste sales are formed. If so, please explain the quantity and sales amount of waste formed in each period; Combined with the internal control system related to waste sales, explain whether a sound internal control system has been established for the original vouchers, key control nodes and post personnel related to waste sales.
(2) Combined with the internal control system related to raw material requisition, explain the personnel setting of positions related to raw material R & D requisition, the type, format and signatory of original vouchers or documents, and how the design and operation of the existing internal control system can effectively prevent the mixed use or fraudulent requisition of raw materials under different purposes Collecting on behalf of others.
(3) In combination with the technical development log or technical development schedule of the R & D department and other records related to R & D activities, explain the matching with the raw material requisition certificate of the issuer's R & D activities.
The sponsor and the reporting accountant are requested to give clear opinions and explain the problems found in the above-mentioned internal control verification and the treatment results.
reply:
1、 Supplementary notes
(I) describe the quantity and amount of tungsten steel at the beginning, purchase, use (specifically divided into production, sales, R & D and other purposes) and at the end of each period, the final destination of direct materials used in R & D, and whether waste sales are formed. If so, please describe the quantity and sales amount of waste formed in each period; Combined with the internal control system related to waste sales, explain whether a sound internal control system has been established for the original vouchers, key control nodes and post personnel related to waste sales
1. The quantity and amount of tungsten steel at the beginning, purchase, use (specifically divided into production, sales, R & D and other purposes) and at the end of each period
Drilling needles, milling cutters and other cutting tools are the main products of the issuer, and tungsten steel is the main raw material. The management of procurement, production and sales in the industry is measured by expenditure. However, in order to reply to this inquiry letter "explain the final destination of direct materials for R & D and the matching relationship between raw material input and waste output", the "expenditure" is converted into "weight of tungsten steel", That is, this reply takes weight as the unit of measurement.
The weight and amount of tungsten steel in each phase of the issuer are as follows:
(1) Weight of tungsten steel
Unit: kg
Weight January June 2021 2020 2019 2018
Opening weight 41075.68 28810.26 30103.68 21629.80
Current purchase 258837.16 380197.60 211424.19 162998.46
Production requisition in this period 235857.04 353790.64 203619.51 149172.64
R & D collection in this period 11570.92 14117.92 9081.05 4610.21
Current sales 369.91 23.62 17.05 741.72
Ending weight 52114.97 41075.68 28810.26 30103.68
Note: the weight in the above table is converted according to the quantity (piece), material specification and density of tungsten steel. Taking tungsten steel 1.30 * 333l as an example, the weight of one piece is, and the pi * (diameter 1.30mm / 2) ²* Density 14.77g/cm ³* Length 333mm / 1000 = 6.53g, i.e. 0.00653 kg.
(2) Amount of tungsten steel
Unit: 10000 yuan
Amount from January to June 2021 2020 2019 2018
Opening balance 2969.55 2429.99 1901.10 1385.74
Current purchase 14011.77 24807.08 16903.90 15373.29
Current production requisition 13283.78 23013.68 15527.46 14344.64
The R & D collection in this period is 779.50 1252.97 846.95 476.38
Current sales: 13.88 0.87 0.60 36.91
Closing balance 2904.15 2969.55 2429.99 1901.10
2. Whether the final destination of the direct materials used for R & D forms waste sales. If so, please specify the quantity and sales amount of waste formed in each period
(1) Direct material details of R & D expenses
The direct materials used by the company for R & D are mainly tungsten steel and equipment parts, of which tungsten steel is used for R & D of drilling needles, milling cutters and other cutting tools, and the equipment parts are mainly purchased parts of Dingtai Siasun Robot&Automation Co.Ltd(300024) for R & D of machinery and equipment.
The details are as follows:
Unit: 10000 yuan
Details of direct materials January June 2021 2020 2019 2018
Tungsten steel 779.50 1252.97 846.95 476.38
Equipment parts 513.45 1023.90 436.82 444.69
Brush grinding raw materials 156.55 264.52 314.03 241.49
Ceramic strip 84.54 192.93 256.83 173.44
Stainless steel wire 51.46 71.63 25.84 134.46
Membrane materials, glue and other materials 79.60 99.03 61.54 54.40
Total 1665.10 2904.99 1942.01 1524.85
(2) The final destination of the main direct materials used in R & D, including the formation of waste
Since tungsten steel and equipment parts are the main direct materials for R & D, tungsten steel and equipment parts are selected for analysis below.
① The final destination of the company's R & D and receiving tungsten steel includes the formation of R & D products (drilling needles, milling cutters and other cutting tools), waste (scrap metal, tungsten steel powder) and reasonable loss
Tungsten steel scrap mainly refers to the scrap materials that the R & D department needs to constantly explore and test in order to achieve the predetermined parameters, performance and other R & D objectives in the R & D process. Therefore, in the process of repeated correction, some materials that fail to meet the expected R & D objectives are formed. The form of tungsten steel waste is divided into waste metal material and tungsten steel powder. Among them, the waste metal material is the branch waste produced by cutting, welding, testing and other processes, and the tungsten steel powder is the tungsten steel powder produced by grinding tungsten steel material with grinding wheel in cutting edge processing, slotting and other processes.
Reasonable loss refers to the inevitable normal loss in the R & D process, including the loss caused by the failure to collect waste completely due to dust, scattering, adhesion and other reasons.
In each period of the report period, the tungsten steel used for R & D and its final destination are as follows:
Unit: kg
Project 2021 2020 2019 2018
January June
1. Unfinished collection of R & D projects (opening) 795.44 463.63 160.94 35.12
2. Tungsten steel for R & D 11570.92 14117.92 9081.05 4610.21
3. The destination of tungsten steel for R & D is 11274.17 13786.11 8778.36 4484.39
Including: R & D products 6360.65 6977.02 4812.26 2215.52
Project 2021 2020 2019 January June 2018
Scrap (scrap metal) 3475.09 5155.57 2891.37 1709.79
Waste (tungsten steel powder) 1023.93 1005.44 662.73 305.14
Reasonable loss (= other directions of 1 + 2-4-3) 414.50 648.08 412.01 253.95
4. Unfinished collection of R & D projects (at the end of the period) 1092.19 795.44 463.63 160.94
Note 1: R & D products include drill needles, milling cutters and other cutting tools. The products are divided into cutting edges
